Tax Lawyers in Florida

The Florida Department of Revenue oversees the administration and enforcement of Florida state tax laws. The state has no personal income tax, allowing residents to benefit from tax-free pensions and retirement pay, along with zero taxes on Social Security or investment income. Florida state sales tax is 6%, but county surtaxes can raise it to 7.5% with essential items like groceries and prescription medications exempt. Similarly, Businesses pay a corporate income tax of 5.5%, but this applies primarily to C corporations, as most LLCs and S corporations pass their income to owners, avoiding the tax. Property taxes are levied locally, varying by jurisdiction.

Florida has no state estate or inheritance tax. While there’s no state income tax, residents are still subject to federal income tax.

Florida stands out from most states by not imposing a personal income tax. This means that wages, salaries, self-employment income, and other earnings are not subject to state tax. However, residents must still pay federal income tax.

Retirement income, including pensions, Social Security benefits, 401(k) withdrawals, and IRA distributions, is fully exempt from state taxation. Similarly, capital gains, dividends, and interest income are not taxed at the state level, though they remain subject to federal tax.

Florida also imposes a 6% use tax on out-of-state purchases brought into the state within six months. If no sales tax was paid at the time of purchase, or if the tax paid was below 6%, the difference must be paid.

Florida’s no-income-tax policy makes it attractive to retirees, investors, and high earners, but residents still contribute through sales taxes, property taxes, and business taxes.

Florida does not impose a state income tax, which means a wide range of earnings are completely exempt from state taxation. They are:

• Employment income: Wages, salaries, bonuses, commissions, and self-employment income are not taxed at the state level, though they remain subject to federal income tax.
• Retirement Income: Retirement income, including Social Security benefits, pensions, 401(k) withdrawals, and IRA distributions, is also exempt from state taxation
• Investment Income: Florida does not tax capital gains, dividends, or interest income at the state level, making it a tax-friendly state for investors and retirees.
• Business Income: Business owners operating sole proprietorships, partnerships, and S corporations benefit from Florida’s lack of personal income tax, as these pass-through entities do not pay state tax on their earnings. However, C corporations are subject to a 5.5% corporate income tax on taxable profits.

While Florida does not tax personal income, residents still contribute to state revenue through sales taxes, property taxes, and various business taxes.

Yes, Florida offers several tax exemptions that benefit residents, businesses, and retirees by reducing overall tax burdens.

• Homestead Exemption: Homeowners can reduce the taxable value of their primary residence by up to $50,000, lowering property taxes. Additional exemptions are available for seniors, disabled veterans, blind persons, widow(er), and first responders.
• Sales Tax Exemptions: Florida does not impose sales tax on groceries, prescription medications, and medical devices. Certain business-related purchases, such as manufacturing equipment, R&D machinery, and agricultural supplies, also qualify for exemptions.
• No State Income Tax: Florida does not tax wages, salaries, pensions, Social Security benefits, or investment income, making it especially attractive for retirees and high earners.
• No Estate or Inheritance Tax: There are no state-level taxes on estates or inheritances, allowing for easier wealth transfer without additional state taxation.

While Florida does not levy a personal income tax, residents still contribute through sales taxes, property taxes, and corporate taxes. However, these exemptions help minimize the overall tax burden.

1. No State Income Tax: Florida does not impose a personal state income tax, so residents are not required to file a state income tax return.
2. Federal Income Tax Filing: You can file your federal income tax in California using –
   • IRS Direct File: As of the 2025 tax season, eligible Florida residents can use the IRS Direct File service to prepare and file their federal tax returns online directly with the IRS for free
   • Use IRS Form 1040 for personal federal taxes.
   • File online through the IRS Free File, tax software, or with a tax professional.
3. Sales Tax (for Businesses): File sales tax returns online via the Florida department of revenue (DOR) e-Services portal.
4. Corporate Taxes:
   • Businesses earning income in Florida must file Form F-1120 for corporate income tax.
   • File online through the Florida DOR.
5. Property Taxes: Paid to your county tax collector.

By following these guidelines, Florida residents and businesses can ensure compliance with federal and state tax obligations.

The cost of hiring a Florida tax lawyer varies based on the complexity of your case, whether it involves IRS audits, offshore compliance, or business tax disputes.

At Taxlawyer.com, we help Floridians find licensed Florida tax attorneys who offer expert legal services without excessive financial burden. Our directory connects you with experienced tax lawyers in Florida and in-house tax attorneys ready to assist.

Finding the right Florida tax lawyer is crucial when dealing with IRS audits, tax debt relief, or business tax matters. Follow these key steps:

• Identify your tax issue – Federal audits, state tax disputes, offshore reporting, or business taxation.
• Research and verify credentials – Ensure your attorney specializes in tax law and has IRS representation rights.
• Schedule an initial consultation – Discuss your case details and potential legal strategies.
• Understand service fees – Clarify whether the lawyer charges hourly, a flat fee, or a retainer.

At TaxLawyer.com, we connect Floridians with top-rated tax attorneys ready to assist.

Find a Tax Lawyer in Your Area

Connect with an experienced Florida tax attorney in:

• Tallahassee
• Miami
• Orlando

Florida’s tax laws are designed to attract residents, businesses, and retirees with a no state income tax policy. This makes it one of the most tax-friendly states in the U.S. Here’s a compact overview of Florida’s key tax laws:

1. No State Income Tax: Florida does not impose a personal income tax on wages, salaries, pensions, Social Security benefits, or investment income.
2. Sales Tax: The state sales tax rate is 6%, with local surtaxes bringing the total to up to 7.5% in some areas. Certain items like groceries, prescription drugs, and medical devices are exempt.
3. Property Tax: Local governments set property tax rates. Florida offers a homestead exemption of up to $50,000 for primary residences, which lowers the taxable value of the property.
4. Corporate Income Tax: Florida imposes a 5.5% corporate income tax on C corporations. Pass-through entities, like LLCs and S corporations, are not taxed at the corporate level.
5. No Estate or Inheritance Tax: Florida has no estate or inheritance tax, making it favorable for wealth transfer.
6. Use Tax: A 6% use tax is applied to items purchased out of state and brought into Florida if no sales tax was paid or if the tax paid was below 6%.

Other Taxes in Florida

7. Tourist Tax: Florida imposes a tourist development tax (also known as a bed tax) on short-term rentals, such as hotels and vacation rentals. The rate varies by county.
8. Fuel & Tobacco Tax: Florida has a 38.6 cents per gallon gas tax rate and a $1.339 cigarette excise tax rate. Its fuel tax is used to fund transportation infrastructure projects.

Overall, Florida’s tax system relies heavily on sales, property, and corporate taxes, making it an attractive state for both individuals and businesses.